Question

From the perspective of American and European companies, analyze the advantages and disadvantages of outsourcing work to the Philippines or India.

Answer 1

Advantage of Outsourcing:

(1) lower cost and higher benefits due to low human resource cost and various government incentives

(2) Effective communication skill of the resident of both the country

(3) Easy access to skilled workforce- Huge availability of skilled manpower

(4) Use of advanced level of technology and infrastructure for effective working conditions

(5) India's liberal policies on outsourcing and tax benefits to the country which is outsourcing the business

(6) Better productivity and good customer support throughout the time

Some Disadvantages-

(1) Loss of local employment

(2) No control or less effective control

(3) Loss of confidentiality of data

(4) Withdrawal of local government support and incentives for business promotion